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Leases (Tables)

3 Months Ended

Jun. 30, 2019

Supplemental balance sheet information related to leases was as follows:



(In millions, except lease term and discount rate)	June 30, 2019
Operating leases
Operating Lease Right-of-Use Assets	$	2,031

Current portion of operating lease liabilities	$	373
Long-Term Operating Lease Liabilities	1,805
Total operating lease liabilities	$	2,178

Finance Leases
Property, Plant and Equipment, net	$	67

Current portion of long-term debt	$	7
Long-Term Debt	86
Total finance lease liabilities	$	93

Weighted Average Remaining Lease Term (Years)
Operating leases	8.56
Finance leases	11.76

Weighted Average Discount Rate
Operating leases	3.61		%
Finance leases	3.99		%

Components of Lease Cost and Supplemental Cash Flow Information

The components of lease cost were as follows:



	Quarter Ended June 30,
(In millions)	2019
Short-term lease cost	$	8
Operating lease cost	115

Finance lease cost:
Amortization of right-of-use assets	2
Interest on lease liabilities	1
Total finance lease cost	3

Variable lease cost ⁽¹⁾	31
Sublease income	(8		)
Total lease cost ⁽²⁾	$	149


(1)	These amounts include payments for maintenance, taxes, payments affected by the consumer price index and other similar metrics and payments contingent on usage.


(2)	These amounts were primarily recorded within operating expenses in the accompanying condensed consolidated statement of operations.

Supplemental cash flow information related to leases was as follows:



	Quarter Ended June 30,
(In millions)	2019
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	(99	)
Operating cash flows from finance leases	—
Financing cash flows from finance leases	(3		)
Right-of-use assets obtained in exchange for lease obligations:
Operating leases ⁽¹⁾	$	2,290
Finance leases	55

(1) These amounts include the transition adjustment for the adoption of the amended leasing guidance discussed in Financial Note 1, “Significant Accounting Policies.”

Maturity of Lease Liabilities

Maturities of lease liabilities as of June 30, 2019 were as follows:



(In millions)	Operating Leases			Finance Leases			Total
The remainder of 2020	$	319		$	8		$	327
2021	401			10			411
2022	344			10			354
2023	286			10			296
2024	232			10			242
Thereafter	900			69			969
Total lease payments ⁽¹⁾	$	2,482		$	117		$	2,599
Less imputed interest	(304		)	(24		)	(328		)
Present value of lease liabilities	$	2,178		$	93		$	2,271

(1)

Total lease payments have not been reduced by minimum sublease income of $191 million due under future noncancelable subleases.

Maturity of Lease Liabilities

Maturities of lease liabilities as of June 30, 2019 were as follows:



(In millions)	Operating Leases			Finance Leases			Total
The remainder of 2020	$	319		$	8		$	327
2021	401			10			411
2022	344			10			354
2023	286			10			296
2024	232			10			242
Thereafter	900			69			969
Total lease payments ⁽¹⁾	$	2,482		$	117		$	2,599
Less imputed interest	(304		)	(24		)	(328		)
Present value of lease liabilities	$	2,178		$	93		$	2,271

(1)

Total lease payments have not been reduced by minimum sublease income of $191 million due under future noncancelable subleases.

Schedule of Future Minimum Rental Payments under Operating Leases

As previously disclosed in our 2019 Annual Report and under the previous lease accounting, the minimum lease payments required under operating leases were as follows as of March 31, 2019:



(In millions)	Noncancelable Operating Leases
2020	$	454
2021	397
2022	343
2023	290
2024	236
Thereafter	936
Total minimum lease payments ^{(1) (2)}	$	2,656


(1)	Amount includes future minimum lease payments for the sale-leaseback transaction of $49 million.

(2)

Total minimum lease payments have not been reduced by minimum sublease income of $133 million due under future noncancelable subleases.